Garuda Construction and Engineering IPO Highlights
Garuda construction ltd is going to launch its IPO. Its opening date is October 8th, 2024 and it will close on October 10th, 2024. This is going to be a book built issue. Through its first public offering (IPO), the company aims to collect about ₹ 264.10 crores. This amount includes ₹173.85 crores from a fresh issue and an offer for sale of 90.25 crores for up to 95,000,000 equity shares having a face value of ₹5 each. The price band of Garuda Construction IPO is between ₹92 to ₹95.
Many of life’s failures are people who did not realize how close they were to success when they gave up.
Thomas A. Edison
Garuda Construction and Engineering IPO Details
| IPO Opening and Closing Date | October 8, 2024 to October 10,2024 |
| IPO Price Range | Rs 92 to Rs 95 Per Share |
| Face Value of Share | Rs 5 Per Share |
| Net Issue Size Offered | 27,800000 Shares amounting to ₹ 264.10 Crores |
| Fresh Issue | 18300000 Shares amounting to ₹ 173.85 Crores |
| Offer For Sale | 9500000 Shares amounting to ₹ 90.25 Crores |
| Listing at | BSE & NSE |
| Issue Type | Book Built Issue IPO |
| IPO DRHP | Click Here |
| IPO RHP | Click Here |
Garuda Construction and Engineering IPO, Tentative Date Schedule
| IPO Opening Date | Tuesday, October 8, 2024 |
| IPO Closing Date | Thursday, October 10, 2024 |
| Allotment Date | Friday, October 11, 2024 |
| Refund Initiation | Monday, October 14, 2024 |
| Credit of Shares in Demat Account | Monday, October 14, 2024 |
| Listing Date | Tuesday, October 15,2024 |
The Garuda Construction and Engineering IPO will open on October 8, 2024 and it will close on October 10, 2024. The allotment for Garuda Construction and Engineering IPO will be finalised on Friday, October 11, 2024. The listing date of Garuda Construction and Engineering IPO on both BSE as well as NSE is fixed as Tuesday, October 15, 2024.
Garuda Construction and Engineering IPO GMP Today
Garuda Construction IPO GMP today is Rs.95 as of 09 October 2024.
Garuda Construction and Engineering IPO Financials
| Period | 30 April 2024 | 31 March 2024 | 31 March 2023 | 31 March 2022 |
| Total Assets | ₹234.84 | ₹228.49 | ₹176.35 | ₹111.03 |
| Total Revenue | ₹11.88 | ₹154.47 | ₹161.02 | ₹77.03 |
| Expense | ₹7.20 | ₹104.82 | ₹105.94 | ₹52.24 |
| Profit After Tax | ₹3.5 | ₹36.44 | ₹40.8 | ₹18.78 |
| Company’s Net Worth | ₹122.51 | ₹119.01 | ₹82.61 | ₹41.79 |
| Total Reserve & Surplus | ₹85.16 | ₹81.65 | ₹70.13 | ₹29.34 |
Company Financial Performance Indicators
| Key Performance Indicators | Value |
| ROCE | 46.69 |
| ROE | 36.14 |
| Price to Book Value | 5.97 |
| Return on Net Worth | 30.62 |
| After Tax Profit Margin (%) | 23.63 |
Garuda Construction and Engineering IPO Lot Size for Different Category of Investors:
Retail investors are eligible to submit bids for a minimum of one lot, containing 157 shares, amounting to ₹14915 and may bid up to a maximum of 13 lots, totalling 2,041 shares. On the other hand small HNI can apply for minimum of 14 lots comprising of 2198 shares amounting to ₹208810. The maximum limit for applying in this IPO for small HNI is 67 lot comprising of 10519 shares amounting to ₹999305.
| Application | Lot | Number of Shares | Amount (in ₹) |
| Retail Investor (Min. Lot) | 1 | 157 | ₹14,915 |
| Retail Investor (Max Lot) | 13 | 2041 | ₹193,895 |
| Small HNI (Min. Lot) | 14 | 2198 | ₹208,810 |
| Small HNI (Max. Lot) | 67 | 10519 | ₹999,305 |
| Big HNI (Min. Lot) | 68 | 10676 | ₹1,014,220 |
Garuda Construction and Engineering IPO, Investors Reserve Quota
| Shares Reserved for QIB | 50% of the Total Issue |
| Shares Reserved for NII | 35% of the Total Issue |
| Shares Reserved for Retail Investors | 15% of the Total Issue |
Cash Flow Generated by the Company
| Net Cash Flow | 30 April, 2024 | 31 March,2024 | 31 March, 2023 |
| Cash From Operating Activities | ₹-13.01 | ₹-681.23 | ₹1225.57 |
| Cash from Investing Activities | ₹253.94 | ₹-211.30 | |
| Cash From Financing Activities | ₹-0.56 | ₹-6.58 | ₹-1218.05 |
Project Based Revenue Generation
| Projects | 30 April 2024 | 31 March,2024 | 31 March 2023 |
| Residential Projects | – | ₹3426.99 | ₹9645.35 |
| Commercial Projects | ₹1187.50 | ₹10806.11 | ₹5437.60 |
| Industrial Projects | – | ₹1034.74 | ₹754.06 |
| Service Projects | – | ₹150 | ₹231.75 |
| Total | 1187.50 | ₹15417.83 | ₹16068.76 |
Contract Based Revenue Generation
| Contracts | 30 April 2024 | 31 March,2024 | 31 March 2023 |
| Private Sector | ₹ 10440.49 | ₹ 13295.28 | |
| Government Sector | ₹ 1187.50 | ₹ 4977.35 | ₹ 2773.48 |
| Total | ₹ 1187.50 | ₹ 15417.83 | ₹ 16068.76 |
Garuda Construction and Engineering IPO Objectives
- To Fulfill Working Capital Needs: A portion of the IPO proceeds will be used to meet the company’s working capital requirements.
2. Repayment of Borrowings: The company intends to use part of the proceeds to reduce its outstanding borrowings, which will improve its financial position by lowering interest costs.
3. General Corporate Needs: The remaining funds will be allocated for meeting general corporate requirements, which will include strategic initiatives, operational procedure improvements, and some other expenses to meet the company’s growth and business objectives
Garuda Construction and Engineering IPO Peer Group Comparative Analysis:
| Company | EPS (₹) | P/E | Face Value (₹) |
| Vascon Engineers Ltd. | 3.05 | 22.66 | 10 |
| Ahluwalia Contracts (India) Ltd. | 55.95 | 22.97 | 2 |
| Capacite Infraprojects Ltd. | 16.09 | 23.61 | 10 |
| PSP Projects Ltd. | 34.16 | 20 | 10 |
| B.L. Kashyap & Sons Ltd. | 2.33 | 48.67 | 1 |
Average PE Ratio of Industry
| P/E Ratio Metrics | P/E Ratio |
| Highest P/E Ratio | 48.67 |
| Lowest P/E Ratio | 20 |
| Average P/E Ratio | 27.58 |
Garuda Construction and Engineering IPO Strengths and Weaknesses
Strengths:
- Focused Business Approach: The Garuda Construction and Engineering ltd primarily focuses on civil construction of residential and commercial buildings. Therefore concentrated approach has helped them build expertise in a particular segment, which is a significant advantage in the competitive construction industry.
2. Established Track Record: The company has a proven history of successfully completing various construction projects, including residential, hospitality, and commercial buildings. Notably, Some of the significant projects completed by the company are, The Golden Chariot Vasai Hotel & Spa.
3. Project Management Capabilities: The company has strong project execution skills, therefore they are consistently completing various projects on schedule while maintaining construction quality.
4. Asset-Light Business Model: The company relies on third-party subcontractors for machinery and equipment, which reduces their fixed costs and enhance profitability
Weaknesses:
- Highly Competitive Industry: The construction industry is highly competitive, and the company faces challenges in maintaining its market share amid intense competition.
2. Delays in Land Acquisition and Approvals: The company faces significant delays in acquiring land and getting necessary approvals from the concerning departments, which may adversely impact its project timelines and increasing costs.
3. Challenges in Sale-ability of Flats: In some specific regions, the company struggles in selling completed apartments due to oversupply, higher-interest rates, and intense competition, affecting profitability.
4. Dependency on Third Parties: While the asset-light model is a strength, it also creates dependencies on third-party contractors for equipment and services, making the company vulnerable to delays and quality issues outside its control.
Management & Promoter Group of Garuda Construction and Engineering Ltd
- PKH Ventures Limited
2. Makindian Township Private Limited
3. Pravinkumar Brijendra Kumar Agarwal
| Promoters Shareholding Pre- Issue | 96.81% |
| Promoters Shareholding Post- Issue |
Company’s Dividend Policy
No dividend has been paid by the company from last two financial years
Anchor investor
Garuda Construction and Engineering has secured ₹75 crore from anchor investors ahead of its IPO. The bid date for anchor investors, for this IPO has been set to October 7, 2024.
| Bid Date Open | October 7, 2024 |
| Shares offered for Anchor Investors | 7895,138 |
| Anchor Investors Portion (In Cr.) | ₹75.00 |
| End Date of Lock in Period (for 50% Shares) (30 Days) | November 10, 2024 |
| End Date of Lock in Period (for Remaining 50% Shares) (90 Days) | January 9, 2025 |
Lead Managers of Garuda Construction and Engineering IPO
Corpwis Advisors Private Limited IPO Lead Manager Review
Registrar of Garuda Construction and Engineering IPO
Link Intime India Private Ltd
Phone: +91-22-4918 6270
Email: garudaconstructions.ipo@linkintime.co.in
Website: https://linkintime.co.in/initial_offer/public-issues.html
Contact Details of Company
Garuda Construction and Engineering Limited
201, A Wing, Fortune 2000 C -3 Block,Bandra Kurla Complex,
Bandra (East), Mumbai 400 051
Phone: +91 22 79635174
Email: compliance@garudaconstructionengineering.com
Website: https://garudaconstructionengineering.com/
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